Tag Archives: State Bank of India

Russia-India: a new chapter of cooperation

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Russia-India: a new chapter of cooperation

Russia and India have established a relationship that could be described as a “special and privileged partnership”. A statement to this effect was made by President Vladimir Putin during his current official visit to New Delhi. The year 2012 marks the 65th anniversary of diplomatic relations between Russia and India.

The agenda of the talks focused on expanding bilateral trade and economic ties. Trade between Russia and India has increased by nearly six times since 2000. Vladimir Putin commented on prospects for further cooperation.

“Mutual trade amounted to nearly $9 bln in 2011. We expect it to hit $10 bln in 2012 and to increase twofold over the next few years. About 50% of exported and imports goods on both sides are produced on the basis of high technology. This year, the supply of Russian-made cars, equipment and chemicals to India has increased by 40%. Russia and India have agreed to increase mutual investments. A memorandum between the Russian Direct Investment Fund and the State Bank of India which was signed on Monday will create more incentives for ramping up mutually beneficial cooperation, including between small and medium-sized businesses.”

Nuclear energy projects occupy a particular place on the Russia-India cooperation agenda. According to Indian Prime Minister Manmohal Singkh, his country appreciates Russia’s assistance in building the Kudankulam Nuclear Power Plant. President of Russia’s Rosatom Corporation Sergei Kirienko says the Russian side has made a particular breakthrough in the Kudankulam Project.

“The Kudankulam Project meets all ‘post-Fukushima’ requirements and has passed ‘stress tests’. If it had been somewhere near Fukushima at the moment of the disaster, it would have withstood the earthquake and the tsunami, thanks to the high level of its nuclear safety.”

Mutual investments make up yet another important chapter of bilateral cooperation between Russia and India. The Russian Direct Investment Fund and the State Bank of India clinched an important deal to this effect in New Delhi. The Fund’s President Kirill Dmitriev comments.

“Each party will invest up to $1 billion in joint projects. We expect bilateral trade to increase by $10bln – $30bln over the next three years.”

Russian companies are taking part in projects to build metal-working plants in Bhilai, Rourkela and other cities of India. Russia’s Severstal is a partner in a joint project to build a full-cycle metalworking facility in India. Russian insurance companies Ingosstrakh and ROSNO are tapping the Indian market as well. In addition, Russia and India have signed a number of important agreements on cooperation in defense and technology.

Russia and India are also set on bolstering cooperation within the framework of international organizations, including the BRICS group, the Shanghai Cooperation Organization, the RIC group which comprises Russia, India and China, and the G20.

Russia, India sign package of agreements

Russia and India have signed a package of cooperation agreements in the framework of Vladimir Putin’s visit to New Delhi, according to the Voice of Russia correspondent.

The two countries have specifically signed a memorandum of understanding between the Russian Direct Investment Fund and the State Bank of India. The two will invest in joint projects one billion dollars each.

The Russian and Indian Ministries of Culture have signed a cultural exchange programme for 2013 through 2015, while the Ministry of Education and Science of the Russian Federation and the Ministry of Science and Technology of India have signed a memorandum of cooperation in the field of science, technology and innovations.

An agreement was also concluded on the sidelines of the summit on setting up a joint venture by the Helicopters of Russia Company and India’s Elcom Systems Private Ltd. 

Moscow, Delhi in Syria dialogue call

Russia and India call on world powers to comply with the Syria resolutions of the UN Security Council and the decisions of the Geneva conference on Syria. They believe there is no way out of the Syrian crisis other than a national political dialogue.

President Vladimir Putin and Prime Minister Manmohan Singh said this in a joint statement issued after their talks in New Delhi on Monday.

According to the United Nations, the Syrian conflict has claimed 20,000 to 30,000 lives since first erupting 21 months ago.

The Syrian government says foreign-backed terrorists are at work. 

Russia, India to foster military ties

Russia and India have made a commitment to foster bilateral military and technical cooperation, Russian President Putin has said in the wake of his Monday meeting with PM Manmohan Singh.

“We have agreed to step up Indian-Russian cooperation in military and technical spheres, to work on new projects through joint ventures and know-hows exchange,” Mr. Putin said.

He cited the fresh deal between a Russian state-run chopper maker and India on exports of helicopter units and equipment.

India has agreed to purchase 71 MiG-17B-5 helicopters worth 1.3 billion dollars. Russia is also to deliver to India 1.6-billion-dollar plane units to organize the licensed assembly of Su-30MKI jet fighters.

Only One Indian Bank among Top 17 BRIC Banks

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State Bank of India (SBI) is the only Indian bank in the Top 17 BRIC banks, as listed by Global Finance, an international finance magazine. This list gives details of the Top 50 banks in the emerging markets, especially the BRIC nations. Top 20 of this list comprises banks from the BRIC nations and South Korea, with South Korea occupying the last 3 slots. This list is generated based on the total assets of the banks. Public sector banks dominate the market right now in terms of their sizes. Government owned banks make up about 70 percent of the banks in India, 50 percent in China and 40 percent in Russia and Brazil. It is surprising to see 10 banks from China in the Top 17 BRIC banks. Moreover, it is surprising that despite 70 percent of our banks being government run, only one Indian bank is present on the Top 20 list. Other Indian banks that are present in the list of Top 50 emerging markets banks are – ICICI 35th, Punjab National Bank 39th, Bank of Baroda 42nd, Bank of India 43rd and Canara Bank 47th.   

India -

State Bank of India (SBI) is the largest government owned bank in India. It is also the oldest bank in the country. Established during British Raj, SBI has flourished tremendously in the last two centuries. It has more than 13,500 branches in the country and has the most rural reach. It also has nearly 155 branches in about 30 countries all over the world, including – Nigeria, Canada and U.S. SBI also has the most number of ATMs in the country. It provides various services like – car loans, home loans, fund management, commercial and factoring services and the like. SBI is the only bank which has various tie-ups with NGOs. SBI is at the 14th position of the Top 17 BRIC banks, with an asset value of $274,411. Chairman of SBI is Pratip Chaudhuri said “One reason that SBI is doing so well presently may be its reach in the interiors of the country, which expands the customer base to a great extent. SBI also pays great attention to the instructions of Reserve Bank of India (RBI).

China –

China has the most number of banks in the Top 17 BRIC banks list. It has 10 banks which are present in the list. These banks are positioned based on their asset values. The top  banks are as follows – Industrial & Commercial Bank of China – $2,032,134; President – Yang Kaisheng, China Construction Bank Corporation – $1,632,263; Chairman – Wang Hongzhang, Bank of China – $1,579,348; Chairman – XIAO Gang, Agricultural Bank of China – $1,568,722; Chairman –  Xiang Junbo, China Development Bank – $771,729; President – Jiang Chaoliang and Bank of Communications – $596,656; Chairman – Hu Huaibang. Though surprising, China’s growth in the banking sector has been tremendous mostly because of tight governmental control. Since, majority of the Chinese banks on the list are controlled by the government, there is better management and administration.

Other Chinese banks present on the list are – China Merchants Bank with an asset of $362,758, China CITIC Bank with an asset of $314,260, China Minsheng Banking Corporation with an asset of $275,368 and China Everbright Bank; with an asset of $224,064. Other Chinese banks on the list are – Hua Xia Bank with an asset of $157,081, China Guangfa Bank with an asset of $123,585 and Bank of Beijing with an asset of $110,708. According to RNCOS, a market research and information analysis company Compound Annual Growth Rate (CAGR) of the banking industry in China will be nearly 14 percent by 2014. The banking sector is doing very well in spite of economic slowdown in the country. A few reasons behind this trend can be – improved demand for financing, both among corporates and households. Also, economic status of China is improving, with lesser currency depreciation than India. Still, China needs to improve its transparency and risk management in the banking sector.

Brazil –

Brazil has faced its share of social, political and economic turmoil. Despite the hardships, it has made great progress over the years and currently has 5 of its banks in the Top 17 BRIC banks. The banks present on the list are – Banco do Brasil – 7th; with an asset of $481,179, Itaú Unibanco – 8th; with an asset of $447,925, Banco Bradesco Brazil – 9th; with an asset of $378,150, Caixa Economica Federal – 15th; with an asset of $237,640 and Banco Santander-Brasil – 16th; with an asset of $229,690. According to Thomas White, a global investing firm, the banks of Brazil are examples of optimism. Since, unemployment has almost halved from 2003, there is more spending power in the hands of the working and middle-class people. Also, the mortgage lending section of the banking sector of the country is expected to grow in the coming years. Moreover, it has a good credit rating, according to Serasa Experian, a financial rating company. Brazil is also aiming at creating a positive credit registry. Despite the ups and downs witnessed by Brazil

Russia –

Russia does not seem to be performing very well in the banking sector because only one Russian bank has made its way in the Top 50 banks in the emerging markets. The only Russian bank on the list is – JSC VTB Bank – 25th; with an asset of $140,792. This is a rather dismal performance considering the size of the country. The reason behind this may be because of 2008-09 world economic crisis, when the oil prices decreased and the foreign reserves of Russia hit almost rock-bottom. The Central Bank of Russia provided $200 billion to help its economy but it couldn’t redeem the whole situation. Despite the money provided by the government, the stability in the country did not last long. So, the banking sector is still suffering. Russia will have to brace itself for tough competition from other BRIC nations, especially in the banking sector, in order to improve its situation.

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